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No.  Ill 


Board  of 
^Estimate  and  Apportionment 


3  =  CITY    OF    NEW    YORK 

-.1   1 


ifryu-ychise,  ^  '^"^^  ^y 


REPORT    BY    THE 

BUREAU  OF   FRANCHISES 

■tJPON  THE  APPLICATION  -OF 


/ 


THE    STOCK    QUOTATION   TELEGRAPH 

COMPANY 

for  a  franchise  to  construct,  maintain   and  operate  conductors   in   conduits 

within  the   entire  City  of    New  York,  except  that  portion  of  The 

Bronx  east  of  the  Bronx  River,  for  the  purpose  of  operating 

a   "stock  ticker"   system,  with  suggestions  as  to 

the  proposed    form  of  contract. 


DKCHMBEK  16,    1912 


University  of  California 

Southern  Regional 

Library  Facility 


M.  B.  BROWN  PRINTING  &  BINDING  CO., 
49-57  Park  Puice.  New  York. 


The  City  of  New  York.  1 

Board  of  Estimate  and  Ai-portionment,  [ 

UuREAU  OF  Franchises,  | 

Room  801,  277  Broadway,  December  16,  1912.      | 

Hon.  William  J.  Gayxor,  Mayor,  Chairman  of  the  Board  of  Esliniate  and  Appor- 
lioniiu'iil: 

Sir— There  is  submitted  herewith  a  proposed  form  of  contract  to  govern  the  graiit 
of  a  franchise  applied  for  by  The  Stock  Quotation  Telegraph  Company,  authorizing  it 
to  use  the  streets  in  all  the  Boroughs  of  the  City,  with  the  exception  of  that  portion 
of  the  Borough  of  The  Bronx  lying  east  of  the  Bronx  River,  lor  the  laying  and 
maintaining  of  wires  used  in  the  operation  of  electrical  printing  instruments,  com- 
monlv  known  as  "stock  tickers." 

the  circumstances  which  led  to  the  tiling  of  the  petition  for  this  authority  may 
he  briefly  recited  as  follows :  _,        .  .       . 

On  October  14,  1910,  the  Commissioner  of  Water  Supply,  Gas  and  Electricity,  in 
a  communication  presented  to  the  Board  that  date,  called  attention  to  the  fact  that 
this  company  and  two  others  were  using  tlie  streets  apparently  without  aiilhority 
therefor,  and  the  matter  was  thereupon  referred  to  tliis  Bureau  for  investigation  and 
report.  On  November  11,  1910,  the  Bureau  presented  its  report  to  the  Board,  and  a 
resolution  was  adopted  requiring  all  the  companies  in  question  to  furnisli  proof  of 
their  alleged  authority  to  use  the  streets  of  the  City,  and,  on  December  12.  1910,  the 
Board  directed  that  upon  the  receipt  of  the  documents  called  for,  the  Lorpi>ratioa 
Counsel  be  requested  to  advise  the  Board  as  to  the  claims  of  the  company. 

In  view  of  the  large  number  of  companies  involved,  this  Bureau  separated  them 
into  two  groups,  and  on  May  2i.  1911,  reported  to  the  Corporation  Counsel  regarding 
the  Auxiliary  Fire  .-Marm  Telegraph  Company  group,  in  relation  to  which  he  rendered 
his  opinion  on  October  11  of  the  same  year.  Upon  tlie  receipt  of  this  opinion,  the 
Bureau  compiled  the  data  relating  to  the  other  companies,  including  tlic  one  under  con- 
sideration at  the  present  time  and,  on  October  31,  1911,  submitted  to  him  a  report  re- 
lating to  such  companies.  The  opinion  on  the  latter  group  was  rendered  Decemlitr 
29,  1911,  and  presented  to  the  Board  January  18,  1912,  and  held  the  companies  con- 
cerned to  have  rights,  if  any,  of  very  doubtful  character,  whereupon  they  were  called 
upon  to  submit  petitions  for  franchises. 

The  petition  of  The  Stock  Quotation  Telegraph  Company  was  received  b'ebruary 
",  1912,  and  a  public  hearing  held  on  the  same  April  25.  Since  that  time  this  Bureau 
has  been  in  communication  with  the  company  and  has  prepared  a  form  of  contract, 
regarding  which  a  conference  was  held  at  tliis  office  on  October  29,  1912.  when  certain 
modifications  were  made  at  the  suggestion  of  the  company's  representative. 

Orr/aiihalioii  of  Company. 
The  Stock  Quotation  Telegraph  Company  was  formed,  as  a  telegraph  company. 
under  and  in  pursuance  of  the  Telegraph  Companies'  .\ct  of  1848,  to  construct  a  lii'e 
nf  telegraph,  commencing  at  the  Barge  office  on  Broad  street,  in  The  City  of  New 
York,  and  thence  extending  tlirough  various  streets  and  aventies  and  sucli  adihtional 
highwavs  as  might  be  deemed  necessary  from  time  to  time.  The  certilicale  of  incor- 
poration whicli  was  liled  in  the  office  of  the  Secretary  of  State,  Deeemlier  2,  1882, 
fixed  the  capital  stock  of  the  company  at  $1,(X)0.(K)0,  and  the  corporate  existence  was 
stated  to  terminate  May  1,  1933.  Tlie  certilicate  does  not  state  the  form  of  telegraphy 
nor  the  kind  of  instrument  which  the  company  proposed  to  operate,  but  it  api)ears  to 
have  started  business  as  a  so-called  "ticker"  company,  and  continued  in  that  business 
to  the  present  dav.  It  also  appears  to  have  started  its  operations  in  the  present  Bor- 
oughs of  Manhattan  and  The  Bronx  in  1882.  but.  from  the  data  ascertainable,  docs 
not  seem  to  have  extended  to  tlie  Bnrougli  of  Bronklyn  until  1893. 

.■\fter  the  commencement  by  tlie  (.'ity  of  the  proceedings  looking  to  an  investiga- 
tion of  the  company's  franchise,  and  on  January  12,  1912,  it  filed  with  the  Postmaster 
General  a  certificate  of  acceptance  of  the  Post  Roads  .-Kct  of  Congress.  It  also  clainT; 
to  he  under  the  jurisdiction  of  the  Interstate  Commerce  Commission,  hccau.se  of  the 
fact  that  it  is  now  operating  in  the  cities  of  New  York,  Chicago,  Philadelphia,  Pitts- 
l)urgh,  Cincinnati.  Boston,  New  Haven  and  Baltimore. 

On  August  29,  1890.  the  companv  tiled  with  the  Secretary  of  State  a  certificate 
reducing  its  capital  stock  to  $250,000,  the  said  certilicate  reciting  that  it  then  had  out- 


standing  a  bonded  debt  of  $200,0CO.     Since  that  time,  however,  it  has  restored  the 
stock  to  $1,COO.OOO,  all  of  which  is  outstanding,  but  has  retired  all  its  bonds. 

The  company  has  earned  from  its  entire  business  an  average  of  slightly  more  than 
$300,000  gross  a  year,  during  the  past  six  years  of  which  it  claims  about  one-half  was 
earned  in  The  City  of  New  York. 

Operations  in  Xcii.'  York. 

The  Stock  Quotation  Telegraph  Company  is  at  the  present  time  engaged  in  this 
City  in  the  furnishing  of  general  news  service,  including  financial  matters,  sporting 
news,  election  news  and  items  of  general  interest,  to  subscribers,  by  means  of  ticker 
instruments,  from  the  central  oftice  located  in  its  own  building  at  26  Beaver  street, 
Korough  of  Manhattan.  It  may  be  stated  that  it  has  no  connection  with  the  New 
York  Stock  Exchange,  all  its  news  being  obtained  through  reporters,  correspondence, 
by  means  of  leased  telegraph  lines  to  other  cities,  and  from  the  United  Press  .Asso- 
ciation and  the  New  York  News  Bureau  Association.  Any  quotations  furnished  by  it 
are  matters  of  general  news  interest  which  are  obtained  indirectly  by  means  of  its 
news  service  and  the  service  of  the  above-mentioned  associations.  In  the  Borough  of 
Manhattan  the  company  operates  largely  by  means  of  conductors  laid  in  the  ducts  of 
the  Empire  City  Subway  Company.  Ltd..  it  using  over  eight  miles  of  duct  space.  A 
large  part  of  its  wiring,  however,  is  overhead  on  poles  and  housetops.  It  also  leases 
from  the  \\estern  Union  Telegraph  Company,  the  Gold  and  Stock  Telegraph  Com- 
pany, and  the  Postal  Telegraph-Cable  Company  about  228.500  feet  of  wire,  of  which 
39,600  is  on  the  Brooklyn  Bridge.  In  the  Boroughs  of  The  Bronx.  Brooklyn  and 
Queens  (the  others  in  which  it  is  operating  at  the  present  time),  its  operations  are 
carried  on  by  means  of  overhead  wires  on  pole  lines.  The  current  used  by  the  com- 
pany is  of  too  high  tension  to  allow  of  the  use  by  it  of  any  wires  in  the  cables  of  the 
New  York  Telephone  Company. 

There  are  two  types  of  instruments  used  by  the  company,  one  of  which  prints  on 
a  tape  and  the  other  on  a  sheet,  the  latter  being  known  as  a  page  or  bulletin  printer. 
General  news  is  furnished  on  the  tape  machines,  but  the  bulletin  printers  are  only  used 
for  the  furnishing  of  financial  news,  except  in  special  cases  when  sporting  news  and 
the  like  is  sent  out  after  the  close  of  the  financial  district.  These  bulletin  printers 
and  their  connections,  etc..  are  owned  by  the  Stock  Quotation  Company,  but  the  service 
over  the  same  is  furnished  by  the  New  York  News  Bureau  Association,  with  which 
the  Stock  Quotation  Company  is  closely  allied. 

The  business  of  the  company  is  somewhat  in  the  nature  of  a  news  business,  its 
wires  and  instruments  being  only  used  in  the  dissemination  of  news  items.  The  com- 
pany does  not  hold  itself  out  to  receive  or  transmit  messages  and  its  equipment  is  such 
that  it  cannot  do  so.    The  method  of  operation  is  about  as  follows : 

Upon  the  receipt  of  news  from  the  news  associations  with  which  it  is  connected, 
or  over  its  leased  wires  or  from  its  own  reporters,  the  item  is  edited  and  put  in  the 
proper  shape  for  transmission  to  its  subscribers.  It  is  then  turned  over  to  the  oper- 
ator, who  sends  the  same  over  the  wires  from  a  transmitter  by  pressing  the  appro- 
priate letter  key  of  the  alphabet  or  the  proper  figure  key.  This  passing  through  the 
switchboard  transmits  electrical  impulses  to  the  ticker  instrument,  causing  the  type- 
wheel  therein  to  turn  to  the  corresponding  letter  or  figure  and  thereupon  make  an  im- 
print on  the  tape  or  page  roll. 

A  technical  description  of  the  general  system  of  operation  furnished  by  the  com- 
pany's superintendent  is  as  follows : 

A  keyboard,  used  in  transmission  of  messages,  is  connected  directly  to  what  is 
known  as  the  transmitter  by  a  number  of  wires  arranged  in  alphabetical  order.  The 
tranmitter  regulates  the  position  of  the  armatures  of  the  line  relays  on  what  is  known 
as  the  circuit  switchboard.  The  vibration  of  the  line  relays  synchronize  with  the  revo- 
lutions of  the  transmitter.  To  every  revolution  of  the  transmitter  the  relay  moves 
from  one  side  to  the  other,  then  back  again.  The  relays  moving  in  this  manner  accord- 
ing to  the  number  of  revolutions  of  the  transmitter  vibrate  between  a  positive  and  a 
negative  battery,  which  is  supplied  by  the  power  plant.  The  vibration  of  the  relays 
between  these  two  mentioned  polarities  send  out  on  the  ticker  line  an  alternating  cur- 
rent which  causes  the  escapement  on  the  tickers  to  move  from  side  to  side.  The  es- 
capement controls  the  location  of  the  type-wheel.  When  the  operator  wishes  to  print 
a  letter  on  the  tape,  he  presses  that  letter  on  the  keyboard,  thus  making  a  contact  by 
holding  down  the  desired  key ;  this  contact  causes  the  transmitter  to  stop  momentarily, 
which  in  turn  holds  the  relays  on  one  side  or  the  other,  according  to  the  position  of 
the  transmitter  at  the  time  of  stopping.  The  stopping  of  the  vibrating  relays  holds 
their  armature  on  either  the  positive  or  negative  pole,  as  the  case  might  be.  thereby 
causing  a  stronger  current  to  flow  out  on  the  ticker  line  than  when  the  relays  were 
vibrating.  This  strong  current  is  sufficient  to  overcome  the  spring  tension  of  the  print- 
ing magnet    (which   magnet  is  not  influenced  b}-  the  vibrating  current,  as  it  is  not 


stronK  enough  to  pull  the  armature),  and  the  letter  whose  key  is  pressed  on  tlic  key- 
board is  printed  on  the  tape.  The  current  on  the  ticker  line  while  the  relays  are 
vibrating  measures  about  one-tenth  of  an  ampere.  When  the  contact  is  prolonged  by 
holding  the  relays  on  any  one  side,  the  current  measures  seven-tenths  of  an  ampere. 
It  is  stated  that  possibly  two  hundred  circuits  could  be  operated  by  one  keyboard. 

The  above  description  refers  particularly  to  what  is  known  as  the  tape  ticker, 
but  the  so-called  financial  bulletin  or  page  ticker  is  operated  on  the  same  principles, 
though  so  far  improved  as  to  warrant  a  new  patent  by  the  Government  of  tlie  United 
States.  The  company  reports  having  aliout  1. 100  instruments  of  both  types  in  operation 
in  this  City,  of  which  more  than  9U0  are  in  the  Borough  of  Manhattan  and  104  are  in 
the  Borough  of  Brooklyn. 

Form  of  Contr.\ct. 
Limitation  of  Grant. 

Section  1  of  the  proposed  form  of  contract,  together  with  subdivision  seventeenth 
of  section  2,  expressly  limits  the  grantee  to  the  operation  of  ticker  instruments  only. 
In  the  laying  of  wires  for  this  purpose,  it  is  required  to  lease  the  same  from  the  Em- 
pire City  Subway  Company,  Ltd.,  in  Manhattan  and  The  Bronx,  and  is  authorized  to 
imild  just  such  conduits  as  are  needed  for  the  accommodation  of  its  wires  in  the  other 
Boroughs,  where  there  is  no  general  system  of  underground  duets.  No  authority  is 
given  for  the  use  of  overhead  wires  and  the  contract  provides  for  the  removal  of 
those  in  existence,  when  rquired  by  the  Board  or  the  Commissioner  of  Water  Supply, 
Gas  and  Electricity. 

Duration  of  Grant. 

The  term  of  this  contract  is  made  to  run  for  a  period  of  fifteen  years  from  Jan- 
uary 1,  1913,  with  the  privilege  of  renewal  of  the  same  for  a  further  period  of  ten 
years. 

This  is  a  term  of  the  same  period  of  duration  as  that  allowed  other  local  com- 
panies in  the  nature  of  telegraph  companies  to  which  franchises  have  been  granted  by 
the  Board,  liut  has  been  made  to  run  from  January  1,  1913,  in  view  of  the  fact  that 
the  original  form  as  prepared  contemplated  its  linal  granting  at  about  this  date,  and 
lixed  the  compensation  for  past  use  and  occupation  on  that  theory. 

Compensation. 

The  compensation  proposed  is  a  $12,000  initial  payment,  $5,000  for  use  and  occu- 
pation of  the  streets  of  the  City  since  October  4,  1911,  and  the  following  annual  per- 
centages : 

1-irst  five  years,  3  per  cent.,  with  a  minimum  of  $4,500 

Second  live  years,  4  per  cent.,  with  a  minimum  of  $7,000. 

Last  live  years,  5  per  cent.,  with  a  minimum  of  $10,000. 

The  initial  payment  originally  suggested  to  the  Company  was  $10,000,  Init  upon  its 
request  to  be  authorized  to  operate  in  the  Borough  of  Richmond,  in  addition  to  the 
other  boroughs,  the  sum  was  raised  to  $12,000. 

The  sum  charged  for  past  use  and  occupation  is  slightly  in  excess  of  the  yearly 
minimum  for  the  first  five  years,  as  it  was  anticipated  that  the  contract  would  proliably 
lie  executed  in  approximately  a  year  from  October  4,  1911.  The  date  from  which  the 
period  runs  is  fixed  by  the  opinion  of  the  Corporation  Counsel  first  rendered,  holding 
various  district  companies  to  be  without  franchises. 

The  percentages  of  gross  receipts  are  fixed  at  three,  four  and  five  per  cent.,  in 
\iew  of  the  fact  that  all  of  the  operations  of  the  Company,  with  very  slight  excep- 
tions, require  the  use  of  the  streets  under  the  franchise  itself  and  its  earnings  are 
therefore  dependent  entirely  upon  its  authority  to  lay  its  wires  through  public  prop- 
erty. 

The  minimums  are  fixed  with  due  regard  to  the  amount  the  Company  stales  it  is 
earning  in  The  City  of  New  York. 

Reversion  of  Properly. 
The  clause  requiring  the  reversion  of  the  property  of  the  Company  in  the  streets 
has  been  inserted  in  the  form  of  contract,  following  the  precedent  established,  and 
in  accordance  with  the  Corporation  Counsel's  interpretation  of  section  73  of  the 
Charter.  When  the  Company's  representative,  however,  was  in  this  office  on  October 
29,  1912.  he  made  strong  objection  to  the  retention  of  this  clause,  but  was  informed  as 
to  the  cause  of  its  insertion.  Later,  on  October  31,  a  communication  was  addressed  to 
the  Companv  reganling  the  matter,  but  since  that  date  nothing  furthrr  has  transpired. 
It  was  nut  thought,  hnwcvcr.  that  the  present  case  presented  any  siuh  new  features  as 
to  warrant  the  consideration  of  any  change  in  the  provision  rccpiiring  reversion  of 
property  and  the  clause  in  question  has,  therefore,  been  retained. 


Rates. 

The  rates  set  forth  in  the  form  of  contract  are  those  which  the  Company  advises 
it  is  at  present  charging,  and  regarding  which  no  objection  has  been  tiled  with  the 
Board  or  with  this  Bureau.  The  City  has  been  given  the  privilege  of  half  rates  if  it 
desires  the  Company's  service,  and  the  Board  is  vested  with  the  control  of  the  Com- 
pany's rates  in  the  future. 

Security  Deposit. 

The  security  deposit  is  fixed  at  the  sum  of  $12,000,  which,  after  consideration,  was 
thought  to  be  sufficient  to  protect  the  interests  of  the  City  in  the  event  of  a  default  on 
the  part  of  the  Company,  and  is  a  larger  sum  than  the  greatest  minimum  annual  pay- 
ment which  will  be  required  during  the  original  term  of  the  grant. 

Special  Conditions. 

In  accordance  with  the  suggestions  of  the  administrative  officers  of  the  City,  the 
sixth  subdivision  of  section  2  has  been  amended  so  as  to  give  those  departments 
greater  jurisdiction  over  the  Company's  operations. 

The  first  paragraph  requires  the  Company  to  maintain  and  operate  the  system 
subject  to  "departmental  rules  and  regulations  now  in  force  or  which  may  be  adopted," 
in  addition  to  ihc  laws  and  ordinances.  The  second  paragraph  of  this  subdivision 
has  been  strengthened  by  authorizing  the  insertion  in  any  permits  granted  by  City  offi- 
cials, for  any  work  of  construction,  of  a  clause  requiring  the  proper  restoration  of  the 
surface  of  the  streets  and  avenues  disturbed.  The  third  paragraph  of  this  subdivision 
is  entirely  new,  so  far  as  franchises  are  concerned,  and  has  been  inserted  upon  the 
suggestion  of  the  President  of  the  Borough  of  Manhattan.  The  furnishing  of  the 
map  required  by  this  paragraph  will  keep  the  Borough  President's  records  regarding 
construction,  so  far  as  this  Company's  activities  require  such  construction,  in  an  up- 
to-date  condition. 

General. 

The  remaining  provisions  of  the  form  of  contract  submitted  herewith  are  simi- 
lar to  those  used  in  general  cases,  and  hardly  need  to  be  commented  on  here. 

A  copy  of  the  contract  as  submitted  with  this  report,  with  the  exception  of  the 
provision  which  makes  the  term  run  from  January  1,  1913,  was  transmitted  to  the 
Company  on  October  31,  1912.  with  a  request  that  it  advise  as  to  its  attitude  regarding 
the  same,  and  at  the  request  of  its  representative,  four  additional  copies  were  for- 
warded on  November  14,  but  no  definite  statement  has  been  received  from  them  up 
to  the  time  of  writing  this  report.  I,  however,  considered  that  as  the  matter  had  been 
so  long  in  abeyance  some  report  should  be  made  to  the  Board,  and  addressed  a  fur- 
ther communication  to  Counsel  for  the  Company,  advising  of  my  intentions,  on  De- 
cember 3.  The  Company,  therefore,  has  notice  of  the  fact  that  this  matter  is  to  be 
submitted  on  December  19. 

If  the  Board  agrees  to  the  form  of  contract,  the  same  should  be  submitted  to  the 
Corporation  Counsel  for  his  approval  as  to  form,  after  which  it  can  be  entered  in  the 
minutes  for  thirty  days,  ordered  advertised  in  the  City  Record,  and  in  two  daily 
newspapers,  to  he  designated  by  the  Mayor,  with  a  notice  of  the  llnal  public  hearing 
thereon. 

A  resolution  for  adoption  is  herewith  submitted.    Respectfully, 

HARRY  P.  NICHOLS,  Engineer,  Chief  of  Bureau. 


Synopsis  of  Proposed  Form  of  Contract. 
Section  1.     Grant. 
Section  2.     (Conditions) 

First — Term  of  grant. 

Second — Compensation  to  be  paid. 

Third — Compensation  continuous. 

Fourth — No  assignment  except  with  consent  of  City. 

F'ifth — Reversion  of  property  to  City. 

Sixth — Provisions  for  administrative  supervision. 

Seventh — Company's  plant  to  be  kept  in  approved  manner. 

Eighth — Construction  to  be  underground. 

Ninth — Company  to  bear  all  expense. 

Tenth — Company's  structures  not  to  hinder  public  works. 

Eleventh — Company's  structures  to  be  altered  if  grades  and  lines  of  streets  are 
altered. 

Twelfth — Company  to  extend  service  to  applicants. 

Thirteenth— Maps  to  be  lilcd. 

l"ourteenth — Rates  to  be  charged. 

Fifteenth — Board  has  power  to  regulate  rates. 

Sixteenth — Deposits  from  subscribers. 

Seventeenth — Restriction  on  use  of  wires. 

Eighteenth — Company  assumes  all  liability. 

Nineteenth — Grant  nut  e.xclusivc. 

Twentieth — Penalties  for  inefficient  service,  etc. 

Twenty-first — Contract  may  be  terminated  for  failure  to  operate. 

Twenty-second — Reports  to  Comptroller. 

Twenty-third — Reports  to  Board. 

Twenty-fourth — Security  deposit. 

Twenty-fifth — Contract  may  be  forfeited  for  failure  to  comply. 

Twenty-sixth — Devolution  of  authority. 

Twenty-seventh — Meaning  of  words  "notice"  and  "direction." 

Twenty-eighth — Definition  of  "streets  and  avenues." 

Twenty-ninth — Grant  subject  to  rights  of  abutters. 
Section  3.     Public  Service  Commission's  jurisdiction  not  affected. 
Section  4.     Covenant  on  part  of  Company. 


8 

THE  STOCK  QUOTATION  TELEGRAPH  COMPANY. 

Proposed  Form  of  Contract. 

This  contract,  made  this  day  of  1912,  by  and  between  The  City  of 

New  York  (hereinafter  called  the  City),  party  of  the  first  part,  by  the  .Mayor  of  said 
City,  acting  for  and  in  the  name  of  said  City,  under  and  in  pursuance  of  the  authority 
of  the  Board  of  Estimate  and  Apportionment  of  said  City  (hereinafter  called  the 
Hoard),  and  The  Stock  Quotation  Telegraph  Company  (hereinafter  called  the  Com- 
pany), party  of  the  second  part,  witnesseth : 

In  consideration  of  the  mutual  covenants  and  agreements  herein  contained,  the 
parties  hereto  do  hereby  covenant  and  agree  as  follows : 

Section  1 — The  City  hereby  grants  to  the  Company,  subject  to  the  conditions  and 
provisions  hereinafter  set  forth,  the  right  and  privilege  to  lay,  construct,  maintain 
and  operate  suitable  wires  or  other  electrical  conductors  under  the  streets  and  avenues 
within  the  Borough  of  Manhattan  and  the  portion  of  the  Borough  of  The  Bron.\  lying 
west  of  the  Bron.x  River,  and  to  lay,  construct,  maintain  and  operate  suitable  wires  or 
other  electrical  conductors,  and  the  necessary  conduits  for  the  same,  under  the  streets 
and  avenues  within  the  Borough  of  Brooklyn,  the  Borough  of  Queens,  and  the  Borough 
of  Richmond,  for  the  purpose  of  electrically  connecting  its  offices  with  each  other  and 
with  other  olTices  and  with  subscribers,  so  as  to  allow  of  the  distribution  of  general 
news,  financial  news,  and  other  matters  of  general  interest,  over  the  said  wires  to 
printing  telegraph  instruments,  commonly  known  as  stock  tickers,  and  for  no  other 
purpose  whatsoever. 

Section  2 — The  grant  of  this  privilege  is  subject  to  the  following  conditions, 
which  shall  be  complied  with  by  the  Company : 

First — The  said  right  and  privilege  to  lay,  construct,  maintain  and  operate  wires 
or  other  electrical  conductors  in  conduits,  for  the  purpose  aforesaid,  shall  be  held 
and  enjoyed  by  the  Company  for  the  term  of  fifteen  (15)  years  from  January  1.  1913, 
with  the  privilege  of  renewal  of  said  contract  for  a  further  period  of  ten  (10)  years, 
upon  a  fair  revaluation  of  said  right  and  privilege. 

If  the  Company  shall  determine  to  exercise  its  privilege  of  renewal,  it  shall  make 
application  to  the  Board,  or  any  authority  which  shall  be  authorized  by  law  to  act  for 
the  City  in  place  of  the  Board.  Such  application  shall  be  made  at  any  time  not  earlier 
than  two  (2)  years  and  not  later  than  one  (1)  year  before  the  expiration  of  the 
original  term  of  this  contract.  The  determination  of  the  revaluation  shall  be  sufficient 
if  agreed  to  in  writing  by  the  Company  and  the  Board,  but  in  no  case  shall  the  annual 
rate  of  compensation  to  the  City  be  fixed  at  a  less  amount  than  the  sum  required 
to  be  paid  during  the  last  year  prior  to  the  termination  of  the  original  term  of  this 
contract. 

If  the  Company  and  the  Board  shall  not  reach  such  agreement  on  or  before  the  day 
one  (1)  year  after  the  expiration  of  the  original  term  of  this  contract,  then  the  annual 
rate  of  compensation  for  such  succeeding  ten  (10)  years  shall  be  reasonable,  and  either 
the  City  (by  the  Board)  or  the  Company  shall  be  bound  upon  request  of  the  other 
to  enter  into  a  written  agreement  with  each  other  fixing  the  rate  of  such  compensation 
at  such  amount  as  shall  be  reasonable,  but  in  no  case  shall  the  annual  rate  so  fixed 
be  less  than  the  sum  required  to  be  paid  for  the  last  year  prior  to  the  termination  of 
the  original  term  of  this  contract,  and  if  the  parties  shall  not  forthwith  agree  upon 
what  is  reasonable,  then  the  parties  shall  enter  into  a  written  agreement  fixing  such 
annual  rate  and  at  such  amount  as  shall  be  determined  by  three  disinterested  free- 
holders selected  in  the  following  manner : 

One  disinterested  freeholder  shall  be  chosen  by  the  Board ;  one  disinterested  free- 
holder shall  be  chosen  by  the  Company ;  these  two  shall  choose  a  third  disinterested 
freeholder,  and  the  three  so  chosen  shall  act  as  appraisers  and  shall  make  the  revaluation 
aforesaid.  Such  appraisers  shall  be  chosen  at  least  six  (6)  months  prior  to  the 
expiration  of  this  original  contract,  and  their  report  shall  be  filed  with  the  Board 
within  three  (3)  months  after  they  arc  chosen.  They  shall  act  as  appraisers  and  not 
as  arbitrators.  They  may  base  their  judgment  upon  their  own  experience  and  upon 
such  information  as  they  may  obtain  by  inquiries  and  investigations,  without  the 
presence  of  either  party.  They  shall  have  the  right  to  examine  any  of  the  books  of 
the  Company  and  its  officers  under  oath.  The  valuations  so  ascertained,  fixed  and 
determined  shall  be  conclusive  upon  both  parties,  but  no  annual  sum  shall,  in  any 
event,  be  less  than  the  sum  required  to  be  paid  for  the  last  year  of  this  original  con- 
tract. If  in  any  case  the  annual  rate  shall  not  be  fixed  prior  to  the  termination  of  the 
original  term  of  this  contract,  then  the  Company  shall  pay  the  annual  rate  theretofore 
prevailing  until  the  new  rate  shall  be  determined,  and  shall  then  make  up  to  the  City 
the  amount  of  any  excess  of  the  annual  rate  then  determined  over  the  previous 
annual  rate.  The  compensation  and  expenses  of  the  said  appraisers  shall  be  borne 
jointly  by  the  City  and  the  Company,  each  paying  one-half  thereof. 


Second-The  Company  shall  pay  to  the  City  for  the  privilege  hereby  granted,  the 
following^^s^u,n^s^on.oney:^   thousand   dollars    ($12,000)    in   cash   within  thirty    (30) 
davs  after  the  date  upon  which  this  contract  is  signed  by  the  Mayor. 

->  The  further  sum  of  live  thousand  dollars  (?5,000)  m  "*'  'c"-  "^e  and 
occupation  of  the  streets  of  the  City  since  October  4,  1911,  to  be  paid 
within  thirty   (30)   davs  after  the  signing  of  this  contract  by  the  Mayor. 

3  During  the  lirst  term  of  live  years,  an  annual  sum  which  sha  1  in  no  case  be 
less  than  forty-live  hundred  dollars  ($4,500)  and  which  shall  be  equal  to 
three  (3)  per  cent,  of  its  gross  annual  receipts  within  the  •-'%•  'f  ^""■■" 
percentage  shall  exceed  the  sum  ot  forty-live  hundred  dollars  (HMW). 

4.  During  the  second  term  of  live  (5)  years  an  annual  sum  xyhich  shal  in  no 
case  be  less  than  seven  thousand  dollars  (?/.<X)0),  and  which  shall  be 
equal  to  four  (4)  per  cent,  of  its  gross  annual  receipts  within  the  City, 
if  such  percentage  shall  exceed  the  sum  of  seven  thousand  dollars 
( $7  000 ) 

3.  During  'the  remaining  term  of  this  original  contract,  an  annual  sum  which 
shall  in  no  case  be  less  than  ten  thousand  dollars  ($10,000)  and  which 
shall  be  equal  to  live  (5)  per  cent,  of  its  gross  annual  receipts  within  the 
City  if  such  percentage  shall  exceed  the  sum  of  ten  thousand  dollars 
($10,000). 

The  annual  charges  shall  commence  from  the  date  on  which  this  contract  is  signed 

^^'  ' All^annual  charges  as  above  shall  be  paid  into  the  Treasury  of  the  City  on 
November  1  of  each  vear  and  shall  be  for  the  amount  due  to  September  30  nex^t  pre- 
ceding. Provided  that  the  moneys  due  when  this  contract  is  signed  by  the  Mayor 
shall  be  paid  into  the  Treasury  of  the  City  within  thirty  (30)  days  immediately  follow- 
ing such  date,  and  provided  further  that  the  first  annual  payment  thereafter  shall  be 
only  for  that  proportion  of  the  lirst  annual  charge  as  the  time  between  the  date  upon 
which  this  contract  is  signed  by  the  Mayor  and  September  30  following  shall  bear  to 

"^^  Whenc°ver°'the' "e'r'centage  required  to  be  paid  shall  exceed  the  minimum  amount 
as  above  then  such  sum  over  and  above  such  minimum  shall  be  paid  on  or  betorc 
November  1  in  each  vear  for  the  year  ending  September  30  next  preced>ng 

\m  and  all  payments  to  be  made  by  the  terms  of  this  contract  to  the  City  by  the 
Company  shall  not  be  considered  in  any  manner  in  the  nature  of  a  tax  but  such  pay- 
ments shall  be  made  in  addition  to  any  and  all  taxes  of  whatsoever  kind  or  description 
now  or  hereafter  required  to  be  paid  by  any  ordinance  of  the  City,  or  resolution  ot 
the  Board,  or  any  law  of  the  State  of  New  \ork. 

Third— The  annual  charges  or  payments  shall  continue  throughout  the  whole 
term  of  this  contract  (whether  original  or  renewal),  notwithstanding  any  clause  in 
any  statute  or  in  the  charter  of  any  other  company  providing  for  payment  for  similar 
rights  or  franchises  at  a  different  rate,  and  no  assignment,  lease  or  sublease  of  the 
rights  or  privileges  hereby  granted  (whether  original  or  renewal),  or  of  any  pan 
thereof  shall  be  valid  or  effectual  for  any  purpose,  unless  the  said  assignment,  lease 
or  sublease  shall  contain  a  covenant  on  the  part  of  the  assignee  or  lessee  th.it  the 
same  is  subject  to  all  the  conditions  of  this  contract;  and  that  the  assignee  or  lessee 
assumes  and  will  be  bound  by  all  of  said  conditions  and  especially  said  conditions  as 
to  payments,  anvthing  in  any  statute  or  in  the  charter  of  such  assignee  or  lessee  to  the 
contrary  notwithstanding,  and  that  the  said  assignee  or  lessee  waives  any  more  favor- 
able conditions  created  by  such  statute  or  its  charter,  and  that  it  will  not  c  aim  by 
reason  thereof,  or  otherwise,  exemption  from  liability  to  perform  each  and  all  ot 
the  conditions  of  this  contract. 

Fourth— The  rights  and  privileges  hereby  granted  shall  not  be  assigned,  either  in 
whole  or  in  part,  or  leased  or  sublet  in  any  manner,  nor  shall  the  title  thereto,  or  right, 
interest  or  property  therein,  pass  to  or  vest  in  any  other  person  or  corporation  what- 
soever either  bv  the  act  of  the  Company  or  by  operation  ot  law.  whether  under 
the  provisions  of  the  statutes  relating  to  the  consolidation  or  merger  of  corporation.s 
or  otherwise,  without  the  consent  of  the  City,  acting  by  the  Board,  evidenced  by  an 
instrument  under  seal,  anything  herein  contained  to  the  contrary  thereof  in  any  wise 
notwithstanding,  and  the  granting,  giving  or  waiving  of  any  one  or  more  ot  such 
consents  shall  not  render  unnecessary  any  subsequent  consent  or  consents. 

Fifth— Upon  the  termination  of  this  original  contract,  or,  if  the  same  be  renewed, 
then  at  the  termination  of  the  said  renewal  term,  or  upon  the  termination  ol  the 
rights  hercbv  granted  for  any  cause,  or  upon  the  dissolution  of  the  Company  betore 
such  termination,  the  wires  and  equipment  of  the  Comiiany  constructed  pursuant  o 
this  contract  within  the  streets  ..".l   .ivnuus  shall  become   the  property  of  the  City 


10 

without  cost  and  the  same  may  be  used  or  disposed  of  by  the  City  for  any  purpose 
whatsoever,  or  the  same  may  be  leased  to  any  company  or  individual. 

If,  however,  at  the  termination  of  this  contract  as  above,  the  Board  shall  so  order 
by  resolution,  the  Company  shall,  upon  thirty  (30)  days'  notice  from  the  Board, 
remove  any  and  all  of  its  wires  and  other  equipment  constructed  pursuant  to  this  eon- 
tract  and  the  said  streets  and  avenues  shall  be  restored  to  their  original  condition 
at  the  sole  cost  and  expense  of  the  Company. 

Sixth — The  Company  shall  construct,  maintain  and  operate  its  electric  system  sub- 
ject to  the  supervision  and  control  of  all  the  authorities  of  the  City  who  have  jurisdic- 
tion in  such  matters,  as  provided  by  the  Charter  of  the  City  and  in  strict  compliance  with 
all  laws  or  ordinances  or  departmental  rules  and  regulations  now  in  force,  or  which 
may  be  adopted  affecting  companies  operating  electrical  conductors  in  the  City. 

No  construction  or  repair  of  said  electrical  system  shall  be  commenced  until  written 
permits  have  been  obtained  from  the  proper  City  officials.  In  any  permit  so  issued, 
such  officials  may  impose  such  conditions,  as  a  condition  of  the  granting  of  the  same, 
as  are  necessarv  for  the  purpose  of  protecting  any  structures  in  the  streets  and  avenues 
and  the  proper' restoration  of  the  surface  of  such  streets  and  avenues  over  which  such 
officials  have  jurisdiction,  and  the  Company  shall  comply  with  such  conditions. 

Upon  completion  of  any  work  of  construction,  the  Company  shall  furnish  to 
the  President  of  the  Borough  a  plan  of  such  character  as  he  may  direct,  showing 
accurately  and  distinctly  the  location,  size  and  type  of  construction  and  complete 
dimensions  of  the  structures  erected,  installed  or  constructed  under  this  contract. 
and  the  location  and  dimensions  of  all  substructures  encountered  during  the  progress 
of  the  work;  the  depth  below  the  street  surface  of  the  new  structures  and  of  the 
substructures  encountered  must  be  shown,  also  their  location  with  reference  to  the 
nearest  curb  line  and  the  nearest  curb  line  intersection. 

The  electrical  and  other  equipment  to  be  installed  by  the  Company,  whether  the 
same  be  under  streets  and  avenues,  in  any  Department  of  the  City  or  in  private 
property,  shall  be  constructed  and  maintained  subject  to  the  approval  and  under 
the  supervision  and  control  of  the  Commissioner  of  \Vater  Supply.  Gas  and  Electricity. 

Seventh — The  plant,  conduits,  wires,  conductors,  connections,  instruments  and 
all  appurtenances  thereto,  shall  be  constructed,  maintained  and  operated  in  the  latest 
approved  manner  and  with  the  most  modern  and  improved  appliances,  and  it  is 
hereby  agreed  that  the  Board  may  require  the  Company  to  improve  or  add  to  its 
plant,  conduits,  wires,  conductors,  connections,  instruments  and  appurtenances,  frorn 
time  to  time,  as  such  conditions  or  improvements  are  necessary  in  the  opinion  of 
the  Board.  Upon  failure  on  the  part  of  the  Company  to  comply  with  the  direction 
of  the  Board  within  a  reasonable  time,  the  rights  hereby  granted  shall  cease  and 
determine. 

Eighth — All  cables  and  wires  of  the  Company  laid  pursuant  to  this  contract  shall 
be  placed  in  ducts,  conduits  or  subways  (referred  to  in  this  paragraph  as 
subwavs).  in  the  Borough  of  Manhattan  and  that  portion  of  the  Borough  of 
The  Bronx  west  of  the  Bronx  River,  such  subways  shall  be  leased  from 
the  company  or  companies  having  control  thereof  under  the  provisions  of 
law.  or  from  the  City,  should  it  succeed  to  the  rights  of  such  company  or  com- 
panies. In  the  other  territory  in  which  the  Company  is  authorized  to  operate  by 
virtue  of  this  contract,  it  may  construct  subways  for  the  accommodation  of  its  cables 
and  wires.  If  the  City  shall  construct  or  acquire  subways  for  electrical  conductors 
in  any  or  all  of  the  Boroughs,  the  Company  hereby  agrees  to  lay  its  wires  and  con- 
ductors in  such  subways  and  the  City  agrees  to  lease  to  the  Company  such  space 
as  may  be  required  for  the  operation  of  the  system  hereby  authorized.  No  cables 
or  wires  shall,  in  the  future,  be  strung  above  the  surface  of  the  streets  and  avenues 
liy  the  Company,  and  those  at  present  in  existence  shall  be  removed  and  placed 
undeground  when  and  where  required  by  the  Board  or  the  Commissioner  of  Water 
Supply.  Gas  and  Electricity. 

Ninth— It  is  a  condition  of  this  contract  that  the  Company  shall  bear  the  entire 
expense  of  all  work  undertaken  by  reason  of  this  grant.  Any  alteration  to  the 
sewerage  or  drainage  system,  or  to  any  other  subsurface  or  to  any  surface  struc- 
tures in  the  streets  required  on  account  of  the  construction  or  operation  of  the 
underground  conduits  herein  authorized  to  be  placed  in  the  streets,  shall  be  made  at 
the  sole  cost  of  the  Company  and  in  such  manner  as  the  proper  City  officials  may 
prescribe. 

Tenth — It  is  agreed  that  the  right  hereby  granted  to  lay  and  maintain  conduit'; 
shall  not  be  in  preference  or  in  hindrance  to  public  work  of  the  City,  and,  should 
the  said  conduits  in  any  way  interfere  with  the  construction  of  public  works  in 
the  streets  and  avenues,  whether  the  same  is  done  by  the  City  directly  or  by  a  con- 
tractor  for   the  City,   the  Company   shall,   at   its   own   expense,   protect   or   move   its 


11 

conduits  and  their  appurtenances  in  the  manner  directed  by  the  City  officials  having 
jurisdiction  over  such  public  work.  „„   •„   ,.,v,;m,   .1,0 

Eleventh-Should  the  grades  or  lines  of  the  streets  and  avenues  ,n  wh'ch  t'K 
Company  is  herebv  authorized  to  operate  be  changed  at  any  tmie  during  the  term 
of  Ts  -contract,  or  any  renewal  thereof,  the  Company  shall  at  '«!  '-"  ^^^P^^  ^• 
change  its  conduits  and  appurtenances  to  conform  with  such  new  grades  and  lines, 
and  during  the  construction  of  any  public  improvement  upon  said  streets  or  ave- 
nues t",e  Companv  shall  take  care  of  and  protect  its  conduits  and  appur  enances 
at  its  own  expense,  all  to  be  done  subject  to  the  direction  of  the  City  oft.cial  haMUg 
jurisdiction   over   the  construction   of   such   change. 


tion 
ized 

(*Xtcn(l    lis    wires    lU    suv-ll    |m^.iih;«\:^    tiiivt     t  k.i  •■■^>.    ..^....    -.      " 1       ir  ■! 

ua  or  corporation,  provided  that  such  premises  are  not  more  than  one-half  m.e 
from  anv  other  premises  in  which  the  Company  has   its  apparatus  installed  at   the 

''"Vwri'eJmrTlie  Company  shall  file  with  the  Board  on  the  first  day  of.Novem- 
ber  in  each  vear  a  map  or  plan  upon  which  shall  be  plainly  and  separately  'n<hcated 
the  number 'of  wires  which  were  in  use  by  the  Company  on  September  30  pre- 
ceding and  the  streets  in  which  the  same  are  located,  and  also  those  which  w^ere 
put  in' use  .luring  the  year  preceding  that  date.  It  shal  also  He  with  the  Depart- 
ment of  Water  Supplv.  Gas  and  Electricity,  on  or  before  the  0th  day  of  each 
month  a  map  or  plan  of  the  locations  in  which  wires  have  been  placed  by  it  during 
the   preceding    month.  . 

Fourtcenth-The  rates  to  be  charged  by  the  Company  shall  not  be  in  excess 
of  the  following,  and  it  is  agreed  that  the  same  may  be  altered  or  changed  by  the 
Board  as  hereinafter  provided.  ,     ,    ,  ■  .•       »  1      „  i,     , 

(a)  For  ordinary  news  service,  including  the  rental  of  the  printing  .telegraph  or 
ticker,  the  sum  of  fifteen  dollars   ($15)  a  month,  or  one  hundred  and  eighty  dollars 

^*^^b)^Fo?  general  news  service,  including  the  rental  of  the  printing  telegraph  or 
ticker,  the  sum  of  twenty  dollars   (?20)   a  month,  or  two  hundred  and  forty  dollars 

^^''?c)Vo?  financial  news  service,  including  the  rental  of  the  printing  telegraph  or 
ticker,  the  sum  of  forty  dollars   ($40)   a  month,  or  four  hundred  and  eighty  dollars 

(d)''Fo'r"^any  other  service  furnished  or  to  be  furnished  by  the  Company  the 
rates  charged  shall  be  reasonable  and  fair  and  subject  to  the  approval  of  the  Board 

The  Companv  agrees  upon  request  of  any  Board.  Department  or  Lureau  of 
the  Citv  government,  to  furnish  service  to  any  and  all  buildings  under  the  control 
of  sucli  Board.  Department  or  Bureau,  at  cne-half  the  rates  above  authorized  to 
be  charged  bv  it  for  whatever  class  or  classes  of  service  may  be  required. 

bifteenth— During  tlie  term  of  this  contract,  or  any  renewal  thereof,  the  Hoard 
shall  have  the  power,  by  resolution,  to  regulate  and  fix  the  maximum  and  minimum 
rates  to  be  charged  by  the  Company  in  the  City,  provided  such  rates  shall  be  rea- 
sonable and    fair. 

Sixteenth— The  Company  shall  not  require  nor  receive  from  its  subscribers  any 
deposit  or  advance  payment  in  excess  of  what  is  reasonably  necessary  to  insure 
navmcnt  of  current  bills,  and  on  such  amounts  so  paid  the  Company  shall  pay  inter- 
est at  the  statutory  rate  whenever  such  money  is  held  for  more  tiian  one  montli. 
Unpaid  bills,  unless  due  from  its  owner,  shall  never  be  charged  against  property, 
and  no  person  not  himself  in  arrears  shall  be  denied  service  because  any  previous 
occupant  of  the  same  premises  is  in  arrears  to  the  Company   for  service. 

.Seventeenth— I  he  wires  of  the  Companv  shall  be  employed  for  no  other  purposes 
than  those  explicitlv  set  forth  herein  and  the  Company  binds  itself  not  to  lay,  use. 
lease  or  operate  wires  for  illegal  purposes  or  to  illegal  i)laces. 

Eighteenth— The  Companv  shall  assume  all  lialnlity  to  persons  or  property  by 
reason  of  the  construction  of  operation  of  the  system  authorized  by  this  contract. 
and  it  is  a  condition  of  this  contract  that  the  City  shall  assume  no  liability  whatso- 
ever to  either  persons  or  property  on  account  of  the  same,  and  the  Company  hereby 
aftrees  to  repay  to  the  City  any  damage  which  the  City  shall  be  compelled  to  pay 
by  reason  of  anv  acts  or  defaults  of  the  Company.  ,  ~        .  , 

Nineteenth— Nothing  in  this  contract  shall  be  deemed  to  alfect  in  any  way  the 
right  of  the  Citv  to  grant  to  any  individual  or  other  corporation  a  similar  right  or 
privilege  upon  the  same  or  other  terms  and  conditions  in  the  territory  covered  by 
this  contract,  or  any   part   thereof. 


12 

Twentieth — Tf  the  Company  shall  fail  to  give  efficient  public  service  at  the  rates 
herein  fixed  or  fail  to  maintain  its  structures  and  equipment  as  herein  provided  in  good 
condition  throughout  the  whole  term  of  this  contract,  the  Board  may  give  notice 
to  the  Company,  specifying  any  default  on  the  part  of  the  Company,  and  requiring 
the  Company  to  remedy  the  same  within  a  reasonable  time ;  and,  upon  failure  of  the 
Company  to  remedy  such  default  within  a  reasonable  time,  the  Company  shall,  for 
each  day  thereafter  during  which  the  default  or  defect  remains,  pay  to  the  City 
the  sum  of  one  hundred  dollars  (?100)  as  lixed  or  liquidated  damages,  or  the  Board, 
in  case  such  structures  or  equipment  whicli  may  affect  the  surface  of  the  streets 
shall  not  be  put  in  good  condition  within  a  reasonable  time  after  notice  by  the  Board, 
as  aforesaid,  shall  have  the  right  to  make  all  needed  repairs  at  the  expense  of  the 
Company,  in  which  case  the  Company  shall  pay  to  the  City  the  amount  of  the  cost 
of  such  repairs,  with  legal  interest  thereon,  all  of  which  sums  may  be  deducted  from 
the  fund  hereinafter  provided  for. 

Twenty-tirst — If  for  a  period  of  twelve  consecutive  months,  the  system  of  the 
Company  sliall  not  be  operated,  or  if  the  same  shall  not  lie  operated  for  a  period  of 
eighteen  mnntlis  out  of  any  consecutive  twenty-four  months,  tlie  Board  may  declare 
the  right  and  franchise  and  this  contract  terminated  without  further  proceedings  at 
law  or  in  equity. 

Twenty-second — Tlie  Company  shall  at  all  times  keep  accurate  books  of  account 
and  shall,  on  or  l)cfore  November  1  in  each  year,  make  a  verified  report  to  the 
Comptroller  of  the  City  of  the  business  done  by  the  Company  for  the  year  ending 
September  30  next  preceding.  Such  report  shall  contain  a  statement  of  the  gross 
receipts  received  from  the  operation  of  the  system  liereby  authorized  from  all  sub- 
scribers served  by  the  Company  in  the  City,  together  with  such  other  information 
and  in  such  form  and  detail  as  the  Comptroller  may  require.  The  Comptroller  shall 
have  access  to  all  books  of  the  Company  for  the  purpose  of  ascertaining  the  cor- 
rectness of  its  report  and  may  examine  its  officers  under  oath. 

Twenty-third — The  Company  shall  submit  to  the  Board  a  report  not  later  than 
November  1  of  each  year  for  the  year  ending  September  30  next  preceding,  and  at 
any  other  time,  upon  request  of  the  Board,  which   shall  state: 

1.  The  amount  of  stock  issued,  for  cash,  for  property. 

2.  The  amount  paid  in  as  by  last  report. 

3.  The  total  amount  of  capital  stock  paid   in. 

4.  The    funded   debt  by   last   report. 
5..    The  total  amount  of   funded   debt. 

6.  The  floatin,g  debt  as  by  last  report. 

7.  The  total  amount  of  floating  debt. 

8.  The  total  amount  of   funded   and  floating  debt. 

9.  The  average  rate  per  annum  of  interest  on   funded   debt. 

10.  Statement   of   dividends   paid   during   the   year. 

11.  The  total   amount   expended    for   same. 

12.  The  names  of  the  directors  and  officers  elected  at  the  last  meeting  of  the 

corporation  held    for  such   purpose. 

13.  Location,   value   and   amount   paid    for   real   estate   owned   by   the   Company 

as   by   last   report. 

14.  Location,  value  and  amount  paid  for  real  estate  now  owned  by  the  Company. 

15.  Number  and  location  of  premises  served  by  the  Company  in  the  City. 

16.  Total  receipts  of  the  Company  for  each  class  of  business  in  the  City. 

17.  Amounts  paid  liy  the  Company  for  damn.ge  to  persons  or  property  on  account 

of  construction  and  operation  in  the  City. 

18.  Total  expenses  for  operation,  including  salaries,  in  the  City. 

— and  such  other  information  in  regard  to  the  business  of  the  Company  as  may  be 
required  l)y  the  Board. 

Twenty-fourth — This  grant  is  upon  the  express  condition  that  the  Company, 
within  thirty  (30)  days  after  the  signing  of  this  contract  by  the  Mayor,  and  before 
anything  is  done  in  exercise  of  the  rights  conferred  Iicreliv,  shall  deposit  with  the 
Comptroller  of  the  City  the  sum  of  twelve  thousand  dollars  ($12,000),  either  in  money 
or  securities,  to  be  approved  by  him.  which  fund  shall  be  security  for  the  performance 
by  the  Company  of  all  of  the  terms  and  conditions  of  this  contract,  especially  those 
which  relate  to  the  payment  of  the  annual  charges  for  the  privileges  hereby  granted, 
in  default  of  which  payment  of  the  annual  charges,  the  City  shall  collect  the  same, 
with  interest,  from  the  said  fund  after  ten  (10)  days'  notice  to  the  Company. 

In  case  of  failure  of  the  Company  to  comply  with  the  terms  of  this  contract 
relating  tn  the  filing  of  annual  statements,  furnishing  of  service  to  applicants  as 
herein  provided  or  its  neglect  or  refusal  to  comply  with  any  demand  or  direction 
of  the  Board  or  other  municipal  officials,  made  pursuant  to  the  terms  of  the  con- 


13 

tract,  or  under  tlu'  niitlioritv  of  any  iaws.  ordinances  or  departmental  regulations 
now  or  hereafter  in  force,  in  such  case  and  in  any  of  these  events,  the  Company, 
except  as  herein  otherwise  provided,  shall  pay  to  the  City  a  penalty  of  fifty  dollars 
($50)   for  each  violation. 

The  procedure  for  the  imposition  and  collection  of  the  penalties  in  this  contract 
shall  be  as  follows  : 

The  Board,  on  complaint  made,  shall  give  notice  to  the  Company,  directing  its 
President,  or  other  officer,  to  appear  before  the  Board  on  a  certain  day  not  less 
than  ten  (10)  days  after  the  date  of  such  notice,  to  show  cause  why  the  Company 
should  not  be  penalized  in  accordance  with  the  foregoing  provisions.  If  the  (Com- 
pany fails  to  make  an  appearance,  or  after  a  hearing  appears,  in  the  judgment  of 
the  Board,  to  be  in  fault,  said  Board  shall  forthwith  impose  the  prescribed  penalty, 
or  where  the  amount  of  the  penalty  is  not  prescribed  herein,  such  amount  as  appears 
to  the  Board  to  be  just,  and  without  legal  procedure  direct  the  Comptroller  to  with- 
draw the  amount  of  such  penalty  from  the  security  fund  deposited  with  him.  In  case 
of  any  drafts  made  upon  the  security  fund,  the  Company  shall,  upon  ten  (10)  days' 
notice  in  writing,  pay  to  the  City  a  sum  suflicieiU  to  restore  said  security  fund  to 
the  original  amount  of  twelve  thousand  dollars  ($12,000),  and  in  default  thereof  this 
contract  shall  be  cancelled  and  annulled  at  the  option  of  the  Board,  acting  in  behalf 
of  the  City.  Ko  action  or  proceeding  or  right  under  the  provisions  of  this  contract 
shall  affect  any  other  legal  rights,  remedies  or  causes  of  action  belonging  to  tfie  City 

Twenty-hfth — In  case  of  any  violation  or  breach  or  failure  to  comply  with  any  of 
the  provisions  herein  contained,  this  contract  may  be  forfeited  by  a  suit  brought  by 
the  Corporation  Counsel,  on  notice  of  ten  (10)  days  to  the  Company,  or  at  the  op- 
tion of  the  Board,  by  resolution  of  said  Pioard,  which  said  resolution  may  contain 
a  provision  to  the  effect  that  the  portion  of  its  system  constructed  and  in  use  by 
virtue  of  this  contract  and  located  in  the  public  streets  and  avenues  shall  thereupon 
become  the  property  of  the  City  without  proceedings  at  law  or  in  equity.  Provided, 
however,  that  such  action  by  the  Board  shall  not  be  taken  until  the  Board  shall  give 
notice  to  the  Company  to  appear  before  it  on  a  certain  day  not  less  than  ten  (10) 
days  after  the  date  of  such  tiotice,  to  show  cause  why  such  resolution  declaring  the 
contract  forfeited  should  not  be  adopted.  In  case  the  Company  fails  to  appear, 
action  may  be  taken  by  the  Board  forthwith. 

Twenty-sixth— If  at  any  time  the  powers  of  the  Board  or  any  other  of  the  au- 
thorities herein  mentioned,  or  intended  to  be  mentioned,  shall  be  transferred  by  law 
to  any  other  board,  authority,  officer  or  officers,  then  and  in  such  case  such  other 
board,  authority,  officer  or  ofliccrs  shall  have  all  the  po\vers.  rights  and  duties  herein 
reserved  to  or  prescribed  for  the  Board  or  other  authorities,  officer  or  officers. 

Twenty-seventh — The  words  ''notice"  or  "direction"  wherever  used  in  this  contract 
shall  be  deemed  to  mean  a  written  notice  or  direction.  Every  such  notice  or  direction 
to  be  served  upon  the  Company  shall  be  delivered  at  such  office  in  the  City  as  shall 
have  been  designated  by  the  Company,  or  if  no  such  office  shall  have  been  desig- 
nated, or  if  such  designation  shall  have  for  any  reason  become  inoperative,  shall  be 
mailed  in  the  City,  postage  prepaid,  addressed  to  the  Company  at  the  City.  Delivery 
or  mailing  of  such  notice  or  direction  as  and  when  above  provided  shall  be  eqtiivalent 
to  direct  personal  notice  or  direction,  and  shall  be  deemed  to  have  been  given  at 
the  time  of  delivery  or  mailing. 

Twenty-eighth— The  words  "streets  and  avenues"  or  "streets  or  avenues,"  wher- 
ever used  in  this  contract,  shall  be  deemed  to  mean  streets,  avenues,  highways,  park- 
ways, driveways,  concourses,  boulevards,  bridges,  viaducts,  tunnels,  public  places 
or  any  other  property  to  which  the  City  has  title  or  over  which  the  public  has  an 
casement,  included  wUhin  the  limits  of  the  territory  in  which  the  Company  is  hereby 
authorized  to  operate. 

Twenty-ninth— The  grant  of  this  privilege  is  subject  to  whatever  right,  title  or 
interest  the  owners  of  abutting  property  or  others  may  have  in  and  to  the  streets  and 
avenues  of  the  territory  in  which  the  Company  is  authorized  to  operate  by  this  con- 
tract. 

Section  3.  Xothing  in  this  contract  shall  he  construed  as  in  any  way  limiting 
the  present  or  future  jurisdiction  of  the  Public  Service  Commission  under  the  Laws 
of  the  State  of  New  York. 

Section  4.  The  Company  promises,  covenants  and  agrees  on  its  part  and  behalf 
to  conform  to  and  abide  by  and  perform  all  the  terms,  conditions  and  requirements 
in   this  contract   fixed   and   contained. 

In  witness  whereof,  the  parly  of  the  first  part,  by  its  Mayor,  thereunto  duly  au- 
thorized by  the  Board  of  Estimate  and  .\pportionment  of  said  City,  has  caused  the 
corporate  name  of  said  Citv  to  be  hereunto  signed  and  the  corporate  seal  of  said 


14 

City  to  be  hereunto  affixed;  and  the  party  of  the  second  part,  by  its  officers,  there- 
unto duly  authorized,  has  caused  its  corporate  name  to  be  hereunto  signed  and  its 
corporate  seal  to  be  hereunto  affixed,  the  day  and  year  first  above  written. 

THE  CITY  OF  NEW  YORK, 

By   Mayor. 

[C0RP0R.\TE   SEAL.] 

.\ttest :     City  Clerk. 

THE  STOCK  QUOTATION  TELEGRAPH  COMPANY, 
By    President. 

[SK.VL.] 

Attest :     Secretary. 

(Here  add  acknowledgmcnlsj 


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